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Thailand Raises
Key Rate to 5%,
Citing Inflation

By

Phisanu Phromchanya and

Tom Fox

Updated June 8, 2006 12:01 a.m. ET

BANGKOK, Thailand -- The Bank of Thailand raised its key interest rate by a quarter of a percentage point to 5%, citing a higher-than-expected inflation rate, but hinted the rate increase may be the last in this tightening cycle.

Slowing economic growth amid high oil prices, rising interest rates and political uncertainty, combined with expectations that inflation will ease in the third quarter, mean the central bank likely will adopt...